The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (Pre-retirement, post-retirement healthy, and disabled)
Updated to a more current mortality table – RP2014 projected to 2020
Retirement Rates
Lowered retirement rates at older ages and extended final retirement age from 70 to 75
Withdrawal Rates
Adjusted termination rates to better fit experience at each age and service year
Disability Rates Salary Scale Line of Duty Disability
Lowered disability rates No change Increased rate from 14% to 15%
Discount Rate
Decreased rate from 7.00% to 6.75%
Mortality rates – Largest 10 Locality Employers – Hazardous Duty Employees Pre-Retirement: RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with Scale BB to 2020; males 90% of rates; females set forward 1 year. Post-Retirement: RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90; females set forward 3 years. Post-Disablement: RP-2014 Disability Life Mortality Table projected with scale BB to 2020; males set forward 2 years; unisex using 100% male. The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (Pre-retirement, post-retirement healthy, and disabled)
Updated to a more current mortality table – RP2014 projected to 2020
Retirement Rates
Lowered retirement rates at older ages 55